Greystone Housing Impact Investors LP 8-K

What Happened

• Greystone Housing Impact Investors LP (the “Partnership”) disclosed on Form 8‑K that five of its South Carolina subsidiary borrowers entered into a Loan Agreement dated December 31, 2025 with BankUnited, N.A. as Administrative Agent (up to $84,000,000 total). An initial promissory note for $42,000,000 was funded into escrow on December 31, 2025 and released on January 2, 2026 when closing conditions were met.
• The initial proceeds financed the acquisition of two rent‑restricted multifamily properties acquired via deed in lieu of foreclosure on January 2, 2026: The Park at Sondrio Apartments (271 units, Greenville, SC) and The Park at Vietti Apartments (204 units, Spartanburg, SC).

Key Details

• Loan size and funding: Up to $84,000,000 facility; $42,000,000 initial advance funded and outstanding; remaining $42,000,000 may be advanced through March 15, 2026 subject to lender participation and fees.
• Fees & interest: Origination fee $252,000; arrangement/agency fees $78,000; interest = 1‑month Term SOFR + 2.75% (monthly reset), interest payable monthly; default interest = +5% (subject to legal limits).
• Security & hedging: Loan secured by pledges of borrower ownership interests, mortgages and assignments on the Closing Date Properties (and any Post‑Closing Properties) and required interest‑rate swap agreements hedging the floating rate equal to the loan balance.
• Covenants & guarantees: Loan matures Dec 31, 2027 (extendable to Dec 31, 2028 with conditions); prepayment permitted without penalty on/after Dec 31, 2026. The Partnership provided an unconditional guaranty of borrower obligations and Greystone Select Incorporated (GSI) provided a guaranty of $8.4M (with specified financial covenants and cure rights). Borrower financial covenants require DSCR of 1.00:1.00 by Dec 31, 2026 and 1.10:1.00 by June 30, 2027, with remedies if not met (partial prepayment, cash collateral, or letter of credit).

Why It Matters

• This filing documents a material financing that increases the Partnership’s secured indebtedness and places the acquired South Carolina properties as collateral. The guarantees from the Partnership and affiliate (GSI) create direct financial obligations for those entities.
• Key investor considerations: interest‑rate exposure (mitigated by required swaps), near‑term debt service covenants that could force cash payments or collateral postings if operating results lag, and the facility’s maturity and extension mechanics. The loans fund acquisition of affordable, rent‑restricted properties that were acquired after defaults under prior mortgage revenue bonds — a change in asset ownership and financing structure investors should monitor.